Is Mauritius still an affordable place for South Africans to relocate to or is just for the elite?

With its enchanting landscapes, pleasant climate, and thriving economy, Mauritius has become an enticing destination for South Africans considering relocation.

However, house pricing in the island country has been rising, which risks forcing everyday South Africans out of the market altogether.  

However, according to Sebastien Brazeau, Director of Only Realty Mauritius, it is not all doom and gloom.  

A booming rental market  

According to Brazeau, renting a property before purchasing has become a popular choice among South Africans contemplating a move to Mauritius. Not only does this allow them to experience the unique lifestyle and determine the perfect location that suits their preferences, but it also provides an opportunity to assess the property market first-hand.  

‘According to our research, the average rental prices in Mauritius are quite competitive when compared to major South African cities. For instance, a 3-bedroom apartment in the city centre can be rented for approximately R13,433.73, while a similar property outside the city centre is available for around R11,122.30,’ he explains.  

Purchase property like in South Africa  

Mauritius tends to cater to the discerning tastes of the wealthy and property prices are akin to those found on the South African Atlantic coastline. Brazeau explains that generally, if you can afford to purchase a property on the Cape Town coast, then you can likely afford a property in Mauritius as well.  

‘As always, prices depend on the location. For example, in Flic en Flac, on the west coast, a brand new two-bedroom, two-bathroom apartment in Bijou Residence starts at approximately R6,8 million. On the other hand, in the vibrant northern region of Grand Baie, Riviere Du Rempart, a three-bedroom, two-bathroom apartment can be acquired for around R4 million,’ he explains. 

Brazeau goes on to explain that even though property prices are rising in Mauritius, this is indictive of global trends and the beauty of Mauritius is that a wide range of property offerings. From stunning coastal residences to vibrant city apartments, there are several property options to suit the preferences and budgets of wealthy South Africans. 

Understanding local market dynamics  

While Mauritius shares some similarities with the South African property market, there are notable differences to note. One key distinction lies in the tax and service delivery systems.  

‘Property owners in Mauritius enjoy the benefit of not having to pay rates and taxes, all while experiencing efficient and reliable service delivery—a luxury that South African property owners may find refreshing,’ says Brazeau.  

Additionally, the transaction process differs in terms of tax obligations. In Mauritius, buyers pay a 5% transfer duty when purchasing a property, while sellers assume this duty when selling. Conversely, in South Africa, sellers are responsible for capital gains tax, which is not applicable in Mauritius.  

Furthermore, unlike the ongoing concerns around land expropriation without compensation in South Africa, Mauritius provides South Africans the opportunity to obtain a life-right permit by investing $375,000 (R6,858,600) in a property scheme specifically designed for foreigners. 

Investment opportunities and safety  

Brazeau suggests that even though property prices in Mauritius may be higher than hoped, South Africans considering moving here should be reminded of the added benefits.    

‘Mauritius is not only a tropical paradise but also an attractive investment destination, ranked among the top 20 places to do business in Africa and worldwide. The country offers a conducive environment for entrepreneurs and investors alike whilst also appealing to young families,’ he says.  

Safety is a paramount concern for South Africans and Mauritius boasts an impressive track record, prioritising the well-being and security of its inhabitants. There are remarkably low crime statistics, a zero-tolerance policy towards guns and drugs, and law enforcement agencies are present throughout the island, ensuring peace and tranquillity. 

‘Mauritius offers an unparalleled opportunity for South Africans to embark on a new chapter of their lives, immersing themselves in the breathtaking beauty and welcoming culture of this island paradise. Property prices shouldn’t be the only deciding factor,’ he concludes.